What type of policy feature typically limits the scope of covered perils?

Named perils coverage specifically lists and limits the perils for which a policy will provide coverage. This means that only the risks that are explicitly mentioned in the policy document are covered, while any risks that are not listed are not protected under that policy. Such an approach allows homeowners to clearly understand the specific events that could trigger a claim but also imposes restrictions on coverage as it does not include protections against unforeseen or non-listed events.

In contrast, all-risk and open perils coverage generally provide broader protection by covering all risks unless they are specifically excluded in the policy. Excluded perils coverage focuses on specifying what is not covered but does not inherently limit the scope in the same way that named perils coverage does. Hence, named perils coverage is uniquely characterized by its focus on explicitly stated perils, thereby limiting the scope of coverage.